Parliament Question: Promotion and Expansion of Natural Gas Sector

LOK SABHA UNSTARRED QUESTION No. 6369 TO BE ANSWERED ON 2nd April, 2026 PROMOTION AND EXPANSION OF NATURAL GAS SECTOR 6369. SHRI ANUP SANJAY DHOTRE: पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ी Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state: (a) the steps being taken by the Government to increase availability of natural gas and to expand pipeline infrastructure in the country; (b) the measures adopted by the Ministry to promote City Gas Distribution networks; (c) the policies in place to encourage the use of Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG); (d) the initiatives taken by the Government to support gas-based power generation and industrial use of natural gas; and (e) whether any incentives are being provided to expand the use of natural gas in transportation and households and if so, the details thereof? ANSWER पेट(cid:332)ोिलयम और (cid:366)ाकृ ितक गैस मं(cid:361)ालय म(cid:336) रा(cid:475)मं(cid:361)ी ((cid:373)ी सुरेश गोपी) MINISTER OF STATE IN THE MINISTRY OF PETROLEUM AND NATURAL GAS (SHRI SURESH GOPI) (a) to (e) Natural gas is supplied through a network of natural gas pipelines and City Gas Distribution (CGD) networks, which are developed by entities authorized by the Petroleum and Natural Gas Regulatory Board (PNGRB). As on December 2025, PNGRB has authorized approximately 34,273 km of Natural Gas Pipeline (NGPL) network which includes common carrier, spur line, tie-in connectivity and dedicated pipeline across the country to create a National Gas Grid to be completed within periods as specified in the PNGRB authorization, out of which 27,427 km are operational. The expansion of National Gas Grid is being undertaken to ensure connectivity to demand centres across the country and enhance availability of natural gas. Providing Piped Natural Gas (PNG) connections, establishment of Compressed Natural Gas (CNG) stations and laying of pipeline infrastructure is part of development of CGD Networks and the same is carried out by the entities authorized by PNGRB as per their Minimum Work Programme (MWP) and techno-commercial feasibility. After completion of 12/12A CGD bidding round, PNGRB has authorized entities for the development of CGD network in 307 Geographical Areas (GAs), covering the entire mainland area for the development of CGD network across the country. The expansion and roll out of CGD network is a continuous process. As on 31.01.2026, the authorized entities have provided 1.62 crore PNG Domestic (PNG (D)) connections, established 8,616 CNG Stations and laid 6.296 lakh inch-km pipeline.To promote the CNG (Transport) and PNG (Domestic) segment of CGD Sector, Government have taken various steps which, inter-alia, includes allocating domestic gas on priority basis to CNG (T)/ PNG(D); diverting domestic gas from non-priority sectors to meet the requirement for CNG (T)/PNG(D) sector, expansion of CGD network, grant of Public Utility Status to CGD projects, notification for supply of domestic gas through available mode (including cascade mode) for CNG(T)/ PNG(D) purpose, provision for priority supply to CNG(T)/PNG(D) from Deepwater, Ultra Deepwater and High Pressure-High Temperature discoveries in case of proportionate distribution etc. Government have also taken measures to enhance availability and accessibility of natural gas across sectors, including CGD (CNG/PNG), gas-based power generation and industrial use, which, inter-alia, include expansion of the National Gas Grid to connect domestic sources and LNG terminals with demand centres; development of LNG import infrastructure; implementation of a unified pipeline tariff; allowing producers with marketing and pricing freedom to sell a portion of domestic gas through gas exchanges authorised by PNGRB; and placing LNG under Open General Licence (OGL) to enable imports on mutually agreed commercial terms. The Unified Tariff has been rationalised by reducing tariff zones from three to two and notified transportation tariffs of Rs. 54/MMBTU for Zone-1 (up to 300 km) and Rs. 102.86/MMBTU for Zone-2 (beyond 300 km), effective from 01.01.2026. Zone-1 tariff has been extended nationwide for CNG (T) and PNG (D), resulting in nearly 50% reduction in transportation charges for consumers beyond 300 km. This reform further improves affordability and equity in access to natural gas. Recently, a comprehensive control order dated 24.03.2026 has been issued under the Essential Commodities Act, 1955 to facilitate time-bound expansion of pipeline infrastructure across the country, especially CGD. The Order provides a uniform framework for grant of right of way (RoW) and permissions by mandating strict timelines, enabling deemed approvals in case of delays, and prohibiting imposition of unauthorised charges by public authorities. It also addresses access issues in residential and private areas by ensuring non-discriminatory and time-bound permissions, thereby removing key bottlenecks in pipeline laying. *****